HMRC has confirmed the Lodging Allowance rates, as tax-free payments, from Monday 6 January 2025 will increase by 4.1% to the following:
- Lodging Allowance will increase to £51.29 per night
- Annual Holiday Retention payments to increase to a maximum of £16.87 per night (£118.09 per week); and
- Weekend Retention payment to increase to £51.29 per night.
These are the amounts an employer can pay without needing to retain documentation for tax administration purposes. It does not impose any restrictions on employers paying above this threshold with appropriate administration. HMRC has also confirmed the Mileage Allowance payable under the National Working Rules can continue to be paid tax-free.
These special tax procedures are available to JIB member companies working under the JIB National Working Rule agreement.
Application form for Lodging and Subsistence Allowances paid under The National Working Rules can be accessed here.
Please contact the Industrial Relations Department on 01322 661600 or email ir@jib.org.uk if you have any further queries.
